With warehouse lending scarce, Fannie Mae is expediting funding in mortgage-backed securities transactions to quicken turnaround for lenders.
"We're providing faster funding to lenders so that they get cash immediately after closing to continue funding loans," Fannie's president and chief executive, Michael Williams, told the financial services executives and lobbyists at an Exchequer Club luncheon in Washington this week.
"Previously, they had to wait a month or more for the MBS transaction to settle," he said.
In response to a question from an executive at the luncheon, Williams indicated that Fannie is not interested in getting into the warehouse lending business. But it has looked at ways to provide support for warehouse lending at the request of the its regulator and the Treasury Department, he said. "If asked, we will do it."
